Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments

	As of March 31, 2014						As of December 31, 2013
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
AFS securities:
Fixed maturity securities	$	82,988		$	82,988		$	80,078		$	80,078
VIEs' fixed maturity securities		597			597			697			697
Equity securities		207			207			201			201
Trading securities		2,316			2,316			2,282			2,282
Mortgage loans on real estate		7,089			7,315			7,210			7,386
Derivative investments (1)		1,044			1,044			881			881
Other investments		1,237			1,237			1,218			1,218
Cash and invested cash		1,849			1,849			2,364			2,364
Other assets – GLB reserves embedded derivatives (2)		1,022			1,022			-			-
Separate account assets		118,968			118,968			117,135			117,135
Liabilities
Future contract benefits:
Indexed annuity and universal life contracts
embedded derivatives		(1,090	)		(1,090	)		(1,048	)		(1,048	)
GLB reserves embedded derivatives		-			-			1,244			1,244
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(781	)		(781	)		(809	)		(809	)
Account values of certain investment contracts		(29,291	)		(30,741	)		(29,078	)		(30,574	)
Short-term debt		-			-			(501	)		(500	)
Long-term debt		(5,380	)		(5,903	)		(5,320	)		(5,762	)
Reinsurance related embedded derivatives		(135	)		(135	)		(108	)		(108	)
VIEs' liabilities – derivative instruments		(22	)		(22	)		(27	)		(27	)
Other liabilities:
Credit default swaps		(2	)		(2	)		(2	)		(2	)
Derivative liabilities (1)		(116	)		(116	)		(187	)		(187	)
GLB reserves embedded derivatives (2)		(43	)		(43	)		-			-

⁽¹⁾ We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty.

⁽²⁾ Portions of our GLB reserves embedded derivatives are ceded to our third-party reinsurance counterparties.  Refer to Note 5 for additional detail.

Fair Value Of Assets And Liabilities On A Recurring Basis

		As of March 31, 2014
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	62		$	69,661			$	1,958		$	71,681
U.S. government bonds			367			21				-			388
Foreign government bonds			-			452				107			559
RMBS			-			4,240				1			4,241
CMBS			-			682				21			703
CLOs			-			46				195			241
State and municipal bonds			-			4,175				29			4,204
Hybrid and redeemable preferred securities			44			872				55			971
VIEs' fixed maturity securities			-			597				-			597
Equity AFS securities			7			38				162			207
Trading securities			-			2,263				53			2,316
Derivative investments (1)			-			858				1,065			1,923
Cash and invested cash			-			1,849				-			1,849
Other assets – GLB reserves embedded derivatives			-			-				1,022			1,022
Separate account assets			1,320			117,648				-			118,968
Total assets		$	1,800		$	203,402			$	4,668		$	209,870
Liabilities
Future contract benefits – indexed annuity
and universal life contracts embedded derivatives		$	-		$	-			$	(1,090	)	$	(1,090	)
Long-term debt			-			(1,203	)			-			(1,203	)
Reinsurance related embedded derivatives			-			(135	)			-			(135	)
VIEs' liabilities – derivative instruments			-			-				(22	)		(22	)
Other liabilities:
Credit default swaps			-			-				(2	)		(2	)
Derivative liabilities (1)			-			(741	)			(254	)		(995	)
GLB reserves embedded derivatives			-			-				(43	)		(43	)
Total liabilities		$	-		$	(2,079	)		$	(1,411	)	$	(3,490	)

		As of December 31, 2013
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	60		$	67,164			$	1,711		$	68,935
U.S. government bonds			346			21				-			367
Foreign government bonds			-			470				79			549
RMBS			-			4,349				1			4,350
CMBS			-			708				20			728
CLOs			-			46				179			225
State and municipal bonds			-			3,891				28			3,919
Hybrid and redeemable preferred securities			40			899				66			1,005
VIEs' fixed maturity securities			102			595				-			697
Equity AFS securities			3			37				161			201
Trading securities			-			2,230				52			2,282
Derivative investments (1)			-			340				1,518			1,858
Cash and invested cash			-			2,364				-			2,364
Separate account assets			1,767			115,368				-			117,135
Total assets		$	2,318		$	198,482			$	3,815		$	204,615
Liabilities
Future contract benefits:
Indexed annuity and universal life contracts
embedded derivatives		$	-		$	-			$	(1,048	)	$	(1,048	)
GLB reserves embedded derivatives			-			-				1,244			1,244
Long-term debt			-			(1,203	)			-			(1,203	)
Reinsurance related embedded derivatives			-			(108	)			-			(108	)
VIEs' liabilities – derivative instruments			-			-				(27	)		(27	)
Other liabilities:
Credit default swaps			-			-				(2	)		(2	)
Derivative liabilities (1)			-			(912	)			(252	)		(1,164	)
Total liabilities		$	-		$	(2,223	)		$	(85	)	$	(2,308	)

⁽¹⁾ Derivative investment assets and liabilities presented within the fair value hierarchy are presented on a gross basis by derivative type and not on a master netting basis by counterparty.

Fair Value Measured On A Recurring Basis Reconciliation

	For the Three Months Ended March 31, 2014
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales,			In or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net (2)(3)			Value
Investments: (4)
Fixed maturity AFS securities:
Corporate bonds	$	1,711		$	3		$	25		$	19		$	200		$	1,958
Foreign government bonds		79			-			3			-			25			107
RMBS		1			-			-			-			-			1
CMBS		20			-			1			(6	)		6			21
CLOs		179			-			1			7			8			195
State and municipal bonds		28			-			1			-			-			29
Hybrid and redeemable
preferred securities		66			-			(1	)		-			(10	)		55
Equity AFS securities		161			-			1			-			-			162
Trading securities		52			1			3			(1	)		(2	)		53
Derivative investments		1,266			(108	)		134			(55	)		(426	)		811
Other assets – GLB reserves
embedded derivatives (5)		27			(249	)		-			-			1,244			1,022
Future contract benefits: (5)
Indexed annuity and universal life
contracts embedded derivatives		(1,048	)		(49	)		-			7			-			(1,090	)
GLB reserves embedded derivatives		1,244			-			-			-			(1,244	)		-
VIEs' liabilities – derivative instruments (6)		(27	)		5			-			-			-			(22	)
Other liabilities:
Credit default swaps (7)		(2	)		-			-			-			-			(2	)
GLB reserves embedded derivatives (5)		(27	)		(16	)		-			-			-			(43	)
Total, net	$	3,730		$	(413	)	$	168		$	(29	)	$	(199	)	$	3,257

	For the Three Months Ended March 31, 2013
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales			In or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net (2)			Value
Investments: (4)
Fixed maturity AFS securities:
Corporate bonds	$	1,505		$	-		$	12		$	156		$	152		$	1,825
U.S. government bonds		1			-			-			(1	)		-			-
Foreign government bonds		46			-			-			30			-			76
RMBS		3			-			-			(2	)		-			1
CMBS		27			(1	)		2			(1	)		-			27
CLOs		154			(1	)		2			(6	)		-			149
State and municipal bonds		32			-			-			-			-			32
Hybrid and redeemable
preferred securities		118			-			5			-			(21	)		102
Equity AFS securities		87			-			2			21			-			110
Trading securities		56			1			(2	)		(1	)		-			54
Derivative investments		2,026			(258	)		40			27			-			1,835
Future contract benefits: (5)
Indexed annuity and universal life
contracts embedded derivatives		(732	)		(130	)		-			9			-			(853	)
GLB reserves embedded derivatives		(909	)		710			-			-			-			(199	)
VIEs' liabilities – derivative instruments (6)		(128	)		15			-			-			-			(113	)
Other liabilities – credit default swaps (7)		(11	)		1			-			-			-			(10	)
Total, net	$	2,275		$	337		$	61		$	232		$	131		$	3,036

⁽¹⁾ The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5).

⁽²⁾ Transfers in or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-period.  For AFS and trading securities, the difference between beginning-of-period amortized cost and beginning-of-period fair value was included in OCI and earnings, respectively, in prior periods.

⁽³⁾ Transfers in or out of Level 3 for GLB reserves embedded derivatives represent reclassifications between future contract benefits, other assets and other liabilities on our Consolidated Balance Sheets.

⁽⁴⁾ Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss).  Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁵⁾ Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁶⁾ Gains (losses) from sales, maturities, settlements and calls are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁷⁾ The changes in fair value of the credit default swaps and contingency forwards are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

Schedule Of Investment Holdings Movements

	For the Three Months Ended March 31, 2014
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	145		$	(10	)	$	(58	)	$	(16	)	$	(42	)	$	19
CMBS		-			-			-			(6	)		-			(6	)
CLOs		12			-			-			(5	)		-			7
Trading securities		1			-			-			(2	)		-			(1	)
Derivative investments		36			(20	)		(71	)		-			-			(55	)
Future contract benefits – indexed annuity
and universal life contracts embedded
derivatives		(25	)		-			-			32			-			7
Total, net	$	169		$	(30	)	$	(129	)	$	3		$	(42	)	$	(29	)

	For the Three Months Ended March 31, 2013
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	183		$	(2	)	$	(4	)	$	(15	)	$	(6	)	$	156
U.S. government bonds		-			-			-			(1	)		-			(1	)
Foreign government bonds		30			-			-			-			-			30
RMBS		-			-			-			(2	)		-			(2	)
CMBS		-			-			-			(1	)		-			(1	)
CLOs		-			-			-			(6	)		-			(6	)
Equity AFS securities		25			(4	)		-			-			-			21
Trading securities		-			-			-			(1	)		-			(1	)
Derivative investments		32			53			(58	)		-			-			27
Future contract benefits – indexed annuity
and universal life contracts embedded
derivatives		(19	)		-			-			28			-			9
Total, net	$	251		$	47		$	(62	)	$	2		$	(6	)	$	232

Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held

	For the Three
	Months Ended
	March 31,
	2014			2013
Derivative investments (1)	$	(110	)	$	(197	)
Credit default swaps (1)		-			1
VIEs' liabilities – derivative instruments (2)		5			15
Embedded derivatives: (1)
Indexed annuity and universal life contracts		(24	)		(23	)	.
GLB reserves		(172	)		761
Total, net	$	(301	)	$	557

⁽¹⁾ Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). 

⁽²⁾ Included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). 

Components Of The Transfers In And Out Of Level 3

	For the Three								For the Three
	Months Ended								Months Ended
	March 31, 2014								March 31, 2013
	Transfers		Transfers						Transfers		Transfers
	In to		Out of						In to		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	260	$	(60	)	$	200		$	158	$	(6	)	$	152
Foreign government bonds		25		-			25			-		-			-
CMBS		6		-			6			-		-			-
CLOs		8		-			8			-		-			-
Hybrid and redeemable preferred
securities		12		(22	)		(10	)		5		(26	)		(21	)
Trading securities		4		(6	)		(2	)		-		-			-
Derivative investments		-		(426	)		(426	)		-		-			-
Other assets – GLB reserves embedded
derivatives		1,244		-			1,244			-		-			-
Future contract benefits:
GLB reserves embedded derivatives		-		(1,244	)		(1,244	)		-		-			-
Total, net	$	1,559	$	(1,758	)	$	(199	)	$	163	$	(32	)	$	131

Fair Value Inputs Quantitative Information

	Fair			Valuation	Significant	Assumption or
	Value			Technique	Unobservable Inputs	Input Ranges
Assets
Investments:
Fixed maturity AFS and trading
securities:
Corporate bonds	$	1,360		Discounted cash flow	Liquidity/duration adjustment (1)	0.7	%	-	9.5	%
Foreign government bonds		80		Discounted cash flow	Liquidity/duration adjustment (1)	1.8	%	-	3.7	%
Hybrid and redeemable
preferred securities		20		Discounted cash flow	Liquidity/duration adjustment (1)	1.7	%	-	2.3	%
Equity AFS and trading
securities		29		Discounted cash flow	Liquidity/duration adjustment (1)	4.3	%	-	6.2	%
Other assets – GLB reserves
embedded derivatives		1,022		Discounted cash flow	Long-term lapse rate (2)	1	%	-	27	%
					Utilization of guaranteed withdrawals (3)	90	%	-	100	%
					Claims utilization factor (4)	60	%	-	100	%
					Premiums utilization factor (4)	77	%	-	132	%
					NPR (5)	0	%	-	0.49	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	28	%
Liabilities
Future contract benefits – indexed
annuity and universal life
contracts embedded derivatives		(1,090	)	Discounted cash flow	Lapse rate (2)	1	%	-	15	%
					Mortality rate (6)				(9)
Other liabilities – GLB reserves
embedded derivatives		(43	)	Discounted cash flow	Long-term lapse rate (2)	1	%	-	27	%
					Utilization of guaranteed withdrawals (3)	90	%	-	100	%
					Claims utilization factor (4)	60	%	-	100	%
					Premiums utilization factor (4)	77	%	-	132	%
					NPR (5)	0	%	-	0.49	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	28	%

⁽¹⁾ The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

⁽²⁾ The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits.  The range for indexed annuity and universal life contracts represents the lapse rates during the surrender charge period. 

⁽³⁾ The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature.

⁽⁴⁾ The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal.

⁽⁵⁾ The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract.

⁽⁶⁾ The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

⁽⁷⁾ The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed income assets.  Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. 

⁽⁸⁾ The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors.

⁽⁹⁾ Based on the “Annuity 2000 Mortality Table” developed by the Society of Actuaries Committee on Life Insurance Research that was adopted by the National Association of Insurance Commissioners in 1996 for our mortality input.